Understanding Premier Inn Hotel: Organizational Structure, Business Environment, and Impact of Covid-19

In this case study we will discuss about understanding business organisationsand below are the summaries point:- Premier Inn Hotel is the largest British chain hotel in the United Kingdom, known for its prime-time television advertising and investments in online promotions. The hotel follows a tall organizational structure, with the Board of Directors, Regional Managers, and General Managers responsible for strategic and operational outcomes. The business environment analysis examines the economic climate and leadership in business, focusing on Premier Inn as a case study.

MODULE 3
Student-ID
number:202118938
Daniel Teodorescu-Marasescu
Module name: Understanding
Business Organisations
Tutor name: Lawrence Ngoe
C2 RED, Foundation Years

1.Introduction
This essay will discuss information about Premier Inn Hotel. This hotel is the largest British chain
hotel in United Kingdom. The Travel Inn chain first opened its doors in 1987. ‘’The Premier Travel Inn
brand was created following Whitbread's acquision in July of the Premier Lodge chain of 132 hotels
for £505m from the Spirit Group. Whitbread merged this business with its existing Travel Inn hotels
to create Premier Travel Inn.’’ (Champaign,2004)
Premier Inn was the first big budget hotel company to invest in prime-time television advertising in
the United Kingdom. Animated advertisements were created to promote the merger of Travel Inn
and Premier Lodge. Internet and offline promotion now account for a sizable part of the brand's
reservations. Premier Inn has made significant expenditures in both its main website and mobile app
for smartphone reservations, which are supplemented with affiliate marketing, which drives
bookings onto the Premier Inn website from third-party websites.
Start with the base information about the hotel, to the SWOT Analysis
(strength,weaknesses,opportunities and threats) covering as well aspects of Pastle Analysis as
political,economic,social,technological,legal and environmental factors about the impact of Covid 19.
2.Organisational Structure of Premier Inn Hotel
Premier Inn Hotel have a tall organisational structure. Start with: Whitbread, the owner of Premier
Inn, to Board of Directors active: Simon Ewins ,Edward Jones and Hemantkumar Patel, who are
ultimately accountable for a hotel's success. The capacity of a director to make choices and take
actions will therefore have a significant influence on the hotel's strategic and operational outcomes.
They cordon the :Regional Managers-In this position, they oversee the overall administration of one
or more hotels in a certain area or region, and your duties include recruiting and training personnel
as well as managing a budget for each location. After the regional managers ,will be the General
Managers- are responsible for managing employees and for planning, marketing , coordinating and
administering hotel services such as catering and accommodation facilities. They have responsibility
for employments who are in different functions. First is Deputy Managers who responds for: Team
Leaders,cleaners,kitken and all staff who had the responsibility to keep the hotel in a hight level.
During the Covid 19 pandemic, the Organisational Structure of the Hotel was change in special about
the last level ,employers. The hotels were closed and was only few staff who request to work in this
period and the hotels lose in a hight level the staff for housekeeping,kitken or reception .
3. Business Environment Analysis of Premier Inn Hotel
The business environment describes the surroundings in which the business operations are carried
out. The economic climate reflects how a firm operates, and a business is heavily dependent on the
environment in which it operates. Leadership in business refers to the ability of an entrepreneur or
firm to lead. These two elements are crucial to a company's success in terms of effort. The paper
looks at “Premier Inn,” one of the largest budget hotels in the United Kingdom, to answer case
issues and queries.
3.1 SWOT Analysis
SWOT stands for Strengths, Weaknesses, Opportunities, and Threats, and so a SWOT Analysis is a
technique for assessing these four aspects of your business. You can use SWOT Analysis to make the

most of what you've got, to your organization's best advantage. As a result, a Covid situation, the
Premier Inn Hotel use different methods to combat the negative effects.
3.1.1 Strength
Some of the strength points are they took responsibly to protect the teams, guests and the
business as well as provided full refunds to customers for all cancelled bookings. Another very
important straight is that they had placed over 27,000 of our employees on temporary furlough,
with the Government support package.
3.1.2 Weaknesses
Of course, there are some weaknesses as the huge financial lost as a result of refusing offering
flexible booking and refund policies at the beginning pandemic and refusing to host business
meetings and support virtual ones, facts that had a negative effect to business guests to use the
hotel as accommodations.
3.1.3 Opportunities
In this period the Premier Inn hotel had some very good opportunities. Some of them can be the
following ones : one of the most important one for the hotels was that because of the pandemic
situation the people were forced to be at home and use the internet and in this way the booking
online is become stronger. Another one can be that the directors had time to plan a strategy that it
is in the best interest for the guest and them self for the moment when the pandemy is done and
the hotels can reopen.
3.1.4 Threats
With all the great opportunities, the hotel needed to deal with some threats as well as most of the
people lost the jobs, and they do not need to travel anymore for business purposes. Other reason is
that the peoples do not have money for pay the hotels rooms.
3.2 PESTLE Analyse
A PESTLE study is a method for gaining a broad view of an industry's environment. PESTLE is an
acronym that stands for Political, Economic, Social, Technological, Legal, and Environmental
considerations. It enables a firm to create an opinion about the variables that may influence a new
business or sector. Certain aspects will be more essential to various types of organisations, and a
PESTLE analysis will assist in identifying risk factors for the SWOT analysis.
3.2.1 Political Factors
One of the political factors it is that the government close in the covid pandemic all the hotels, for a
period but they give the opportunity in this period to pay less taxes and they help the hotels with
money for employers , so they could keep it. Also due to lockdowns imposed by various countries
now have tremendously affected the Premier Inn Hotels and so it is having a very tough phase now.
But gradually many countries are also now easing their lockdown which will help the hotel industry
to grow and increase their revenues.
3.2.2 Economical Factors
Inflation is the most important economic factors who affect in this period Premier Inn Hotels. They it
faces huge losses due to the lack of clients but also employees .” Whitbread has confirmed it axed
around 1,500 jobs as it saw sales more than halve after coronavirus restrictions forced swathes of its

estate to close”(James,2021). Also “ Alison Brittain, the Whitbread chief executive, predicted a
further decline in occupancy in November and December after the introduction of tiered systems of
coronavirus restrictions in England and Scotland and the firebreak lockdown in Wales”(Julia,2020).
3.2.3 Technological Factors
After this several period, people they started using the internet more, which helped the hotel to
reduce costs, enhance operational efficiency, and improve services and customer experience. Other
factors can be that guest tech tools are being deployed to provide remote access to front-desk,
concierge, and customer-service functions via chatbots or live-chats with on-property staff, putting
immediate assistance directly into the hands of guests without the need to interact with hotel
employees face-to-face.
3.2.4 Legal Factors
A temporary shutdown affects almost every area of legislation important to the functioning of a
Premier Inn hotel: employment laws, regulatory laws (federal, state, and municipal), loan
agreements, franchise, management, and licencing agreements, general borrower interactions,
taxation, and insurance legislation. After Covid 19,the hotel adopting a new health and safety
factors, they provide a clean hotel using more chemicals to protect the guest and provide sanitiser in
rooms. This new strategy will help the hotels to keep the doors open for guest.
3.2.5 Environmental Factors
The covid pandemic bring some environmental factors, as an example air pollution and disease-
causing microbes. The Premier Inn Hotels adopt a new strategy for keep all the bacteria out of the
hotels. They use strong chemicals to clean in special the touch area and the rooms, use the new air
conditions who pacificate the air and the mask in a hotel.” Premier Inn’s approach to the
environment is guided by their environment policy and energy policy, which contain a number of
principles which they are required to comply.”(Journal,2012)
4.Conclusion
As the conclusion, the Premier Inn Hotel it suffered both advantages and innumerable disadvantages
during the pandemic. Start with the period when hotels were closed and was only few staff who
request to work in this period, till when they open and they are suffering numerous changes. The
hotels lose money, staff and clients in the pandemic period, but win the time to fix all the problems
and improve the image of the hotels. They win it is well more bookings online and they had all
rooms in a high standard of housekeeping. The hotels have after Covid few straight ,like took
responsibly to protect the teams, guests and the business and provided full refunds to customers for
all cancelled bookings , but also , some weaknesses it is well. As an example, the huge financial lost
as a result of refusing offering flexible booking and refund policies at the beginning pandemic or
refusing to host business meetings and support virtual ones. Therebefore ,the Premier Inn Hotel, will
be able to come back to the positive result and higher quality standards after the Covid Period.

Reference List
1.James Andrews,14 Jun 2021,Mirror, available at https://www.mirror.co.uk/money/breaking-
premier-inn-owner-whitbread-23316886
2.Julia Kollewe,27 Oct 2020,Support of the Guardian ,available at
https://www.theguardian.com/business/2020/oct/27/premier-inn-owner-whitbread-loss-local-
lockdowns-bookings-profits-covid-hotel-closures
3.The WritePass Journal, available at https://writepass.com/journal/2012/12/strategic-analysis-
swot-pestel-porter-of-premier-inn-whitbread-plc/
4.Champaign,2004 available at https://www.campaignlive.co.uk/article/premier-travel-inn-unveils-
rebrand-hotels-merger/221132?src_site=brandrepubli